Divorce and Real Estate

Your home may be the greatest single asset of your marriage, but it may become a point of frustration in your divorce given its financial and emotional value. You should understand both your legal rights and economic realities before making any decisions. Also, if you have children, their needs are yet another factor.

The house is an asset and therefore subject to division according to your state's property division law. You will want to know what percentage of the house belongs to you and also whether the court would order the house conveyed to you or to your spouse.. However, practical considerations, not the law, often dictate who gets the house, the terms of the buyout, or if the house is sold to a third party.

If you want to keep the house, you will have to "buy out" your spouse, usually through a new mortgage. However, you might not be able to afford a new, larger mortgage. Here is my mortgage calculator to see how large a mortgage your income can handle. If you are unsure of your post-divorce income (alimony, child support, etc.) check your divorce professional. If you can't afford a new mortgage, the house will most likely be sold and you may be entitled to your share of the equity.

Home sales are always stressful, but a divorcing couple's inability to fully cooperate often brings stress levels to new heights. Couples who are best able to cooperate share the largest amount of money.

What is a Realtor/Facilitator?

Nancy Hill will do the following if it is necessary to Sell the Home:

Setting the Price - Nancy will propose an asking price and marketing plan based on her neutral, independent expert assessment without prejudice against you or your spouse. Both sides can trust Nancy as her loyalties are non-partisan. Trust means cooperation. Cooperation means reaching the goal sooner.

          Ask Yourself: Without a neutral expert, will you and your spouse, and your spouse's attorney, all be in agreement? Who will propose the price? Will your spouse and his lawyer assume that you are trying to "get away with something?"

Preparing the House for Sale - Nancy is an expert in suggesting cost-effective strategies to best show the house. For example, curb appeal (first appearances from the street) is enhanced by low-cost debris removal, gardening, and maybe even some paint. Interior spaces are more attractive when clean and shiny, and they appear more spacious if uncluttered. If Nancy is directing the sale then there will be fewer arguments between you and your spouse about what needs to get done in order to sell the home.

Advertising and Promoting the House - Nancy has a systematic approach to selling homes. Most listing agreements call for the realtor to pay for advertising, so she is an expert with optimizing her marketing dollars. Also, your home will be posted on the local MLS (multiple listing service) which is used by real estate professionals in searching for homes.

Showing the House - Nancy is an expert at meeting prospective buyers and showing homes to pre-qualified prospects who meet certain mortgage qualification standards.

          Ask Yourself: Will you or your spouse always be available to take phone calls, pre-qualify buyers, and show the house? Do you know what to say? Do you know what not to say, like "we're getting a divorce?" In fact, we suggest that the homeowner be absent from the first showing. Finally, do you really want unscreened strangers dropping by?

Executing a Purchase Agreement - Nancy understands the contracts and contingencies of a real estate transaction.

          Ask Yourself: Can you get a document executed that will be satisfactory to your spouse and his or her counsel? Will there be back and forth between your lawyer and your spouse's lawyer costing you unnecessary legal fees?

Closing the Deal - A signed agreement is the beginning of another long process. Nancy often spearheads pre-closing tasks like working with the sellers to obtain documents and satisfying closing contingencies like inspections and repairs.

          Ask Yourself: Are you or your spouse prepared to take care of all these pre-closing details? Will your spouse and his counsel cooperate? Would a realtor improve the chances of cooperation? Unlike lawyers, realtors don't get paid unless the deal closes, so they have a vested interest in making sure your house is sold.

Nancy Hill has the ability to listen with respect to you and your spouse. We can work together to determine a solid course of action to take regarding your home/s.